European equities and global government bonds softened as data confirmed a deep slowdown in China’s economy and investors poised for western central banks to tighten ultra-loose monetary policy.
The regional Stoxx 600 share index, which rose more than 2 per cent last week as global markets rallied to cheer strong corporate earnings, fell 0.4 per cent in early dealings. London’s FTSE 100 slipped 0.1 per cent. Futures markets signalled that Wall Street’s S&P 500 would open 0.3 per cent lower.
“Slowing China growth and global inflation concerns could bring headwinds to risk assets,” such as equities, strategists at Citi wrote in a note to clients. “Global equities are likely to be under pressure in coming months.”